Pacific Islands launch new climate fund

Pacific leaders will launch the first call for proposals next week for the new Pacific Resilience Facility (PRF). The regional fund is designed to swiftly channel climate finance to local communities for renewable energy, resilience, and ocean protection, according to experts cited by Climate Change News.

Fiji's assistant minister for foreign affairs, Lenora Qereqeretabua, stated the PRF was formally launched in May this year and is meant to "serve communities at a community level". "We are expecting pledges for the PRF, and these funds will go to communities that apply," she said. She added that the application process is designed to be much easier than for global funds.

Leaders from the 18-member Pacific Islands Forum (PIF), including Australia and New Zealand, are expected to issue a call for global pledges at a high-level meeting this coming week in Palau. The meeting will shape regional priorities ahead of the pre-COP hosted by Fiji and Tuvalu, and COP31, co-led by Australia and Türkiye.

Fund Targets and Backing

The PRF has so far received about $172 million in capital, with about $67 million coming from Australia. It aims to close the year with $500 million. At COP31, a dedicated session on small island states' climate finance needs will seek to drive further pledges into the fund.

Sindra Sharma, international policy lead at the Pacific Islands Climate Action Network (PICAN), said the PRF's model for quick disbursements has "very solid and good" intentions but needs political and financial backing. "The proof is going to be when the fund actually starts operating and delivering to communities," she added, noting that bureaucracy in accessing funds must be scrutinized.

The facility aims to deliver funds in two categories: one for climate adaptation and disaster resilience, and another for social and community resilience including capacity-building and education. Wesley Morgan, a study author from the University of New South Wales, said Australia must leverage global interests to direct funding to the PRF "or else the Pacific won't be able to trust Australia as a partner". Australia ratified the PRF treaty in May, triggering its entry into force.

Ocean Crisis and Economic Pressures

Leaders meet amid an "ocean crisis" of record-breaking heat caused by this year's "super El Niño", said Kevin Chand of National Geographic's Pristine Seas. Coral Pasisi, director of climate change at the Pacific Community, warned rising ocean heat could lead to food insecurity and lost government earnings as fish stocks like tuna migrate.

Climate shocks deepen existing economic pressures. A recent University of New South Wales report found Pacific nations have spent up to a quarter of their GDP on fossil fuel imports due to the war in Iran. Morgan said partner nations should support the energy transition by covering upfront costs for switching from diesel to solar, batteries, and grid upgrades.

Sharma said the PIF should mention the need to phase out fossil fuel extraction and consumption. Last year's COP30 failed to deliver a global fossil fuel transition roadmap, leading several Pacific nations to pursue their own phase-out summit. Both the chairs of that coalition and the Australian COP31 co-presidency have vowed to push for the topic at COP31.

Sharma noted the perception of Australia in the region is "genuinely divided". She said the pre-COP31 in Fiji, usually a technical negotiation space, will determine how meaningful Australia's advocacy for the Pacific can be. Pacific nations want to use the early October pre-COP to demonstrate their challenges and advocate for limiting warming to 1.5C. World leaders are due to visit Tuvalu to experience rising sea levels, though Australia and Fiji have yet to confirm attendance.